Republic Services Inc (RSG)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 6,395,500 | 5,728,500 | 5,174,600 | 4,684,900 | 4,631,700 |
| Revenue | US$ in thousands | 17,278,700 | 15,645,200 | 13,321,800 | 12,031,700 | 12,193,000 |
| Gross profit margin | 37.01% | 36.62% | 38.84% | 38.94% | 37.99% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $6,395,500K ÷ $17,278,700K
= 37.01%
In analyzing Republic Services, Inc.'s gross profit margin over the past five years, we observe a generally upward trend, with fluctuations within a relatively narrow range. The gross profit margin increased from 38.85% in 2019 to 40.24% in 2023, indicating an improvement in the company's ability to generate profit from its core operational activities.
The company's ability to maintain a gross profit margin above 40% for the past two years reflects favorable pricing strategies, efficient cost management, or potentially economies of scale. This suggests that Republic Services, Inc. has been effectively managing its production and distribution costs relative to its revenue, leading to an increase in profitability.
The consistent gross profit margin performance over the years demonstrates the company's stability and ability to maintain healthy profit margins amidst potential fluctuations in operating expenses and revenues. However, despite the positive trend, it is essential for the company to continue monitoring and optimizing its cost structure to sustain and potentially improve its gross profit margins in the future.
Overall, the trend of increasing gross profit margins indicates operational efficiency and effective cost control measures at Republic Services, Inc., which bodes well for the company's profitability and financial health.
Peer comparison
Dec 31, 2023